With Worries Abated, Apple (AAPL) Works Higher into iPhone 7 - RBC
RBC Capital analyst Amit Daryanani reiterated an Outperform rating and $115 price target on Apple (NASDAQ: AAPL) after beating low expectations.
Daryanani commented, "AAPL reacted positively to a modest beat and raise as investors gained comfort that FTM estimates aren't heading any lower. iPhone units came in at 40.4M (while AAPL lowered 4M of channel inventory) and their guide implies iPhone units improving by ~10% q/q to ~44-45M range for Sept-qtr. Furthermore, the significant ASP drop in June-qtr (~$65 y/y) should also improve as we move forward into Sept-qtr with new product launches. Finally, we think gross-margins being stable/ahead of expectations despite a higher iPhone SE mix was incrementally positive for investors. Maintain OP and $115 target as we think the stock works higher given a confluence of iPhone 7 upgrade cycle and easier compares."
For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.
Shares of Apple closed at $96.67 yesterday.